The Rouse Company and Unconsolidated Proportionate Share Ventures Statement of Net Operating Income (in thousands)

Retail centers For the three months ended June 30, 2002 2001 Unconsolidated Unconsolidated Proportionate Share Proportionate Share The Rouse Company Ventures Total The Rouse Company Ventures Total Minimum rents $ 92,478 $ 13,397 $ 105,875 $ 75,006 $ 13,018 $ 88,024 Percentage rents 2,368 256 2,624 2,840 195 3,035 Specialty retail rents 5,768 486 6,254 4,123 660 4,783 Other rents (note 1) 48,334 7,334 55,668 40,658 6,544 47,202 Other revenues (note 2) 6,756 256 7,012 8,472 710 9,182 155,704 21,729 177,433 131,099 21,127 152,226 Share of FFO of minority interest ventures (note 3) 2,743 - 2,743 2,379 - 2,379 Total revenues 158,447 21,729 180,176 133,478 21,127 154,605

Operating expenses 67,164 7,823 74,987 56,558 7,625 64,183

Net Operating Income $ 91,283 $ 13,906 $ 105,189 $ 76,920 $ 13,502 $ 90,422

Notes: (1) Other rents are comprised primarily of charges to tenants for operating expenses. (2) Other revenues are comprised primarily of parking revenues, management fees, lease termination payments and late charges. (3) Minority interest ventures include: Randhurst, Ridgedale Center, Southland Center, Staten Island Mall and other assets acquird in the Rodamco transaction. The Rouse Company and Unconsolidated Proportionate Share Ventures Statement of Net Operating Income (in thousands)

Retail centers For the six months ended June 30, 2002 2001 Unconsolidated Unconsolidated Proportionate Share Proportionate Share The Rouse Company Ventures Total The Rouse Company Ventures Total Minimum rents $ 169,067 $ 27,150 $ 196,217 $ 149,229 $ 25,844 $ 175,073 Percentage rents 5,118 462 5,580 5,116 496 5,612 Specialty retail rents 9,777 1,102 10,879 7,273 1,194 8,467 Other rents (note 1) 88,910 13,760 102,670 83,599 12,744 96,343 Other revenues (note 2) 18,872 1,051 19,923 16,709 1,146 17,855 291,744 43,525 335,269 261,926 41,424 303,350 Share of FFO of minority interest ventures (note 3) 4,918 - 4,918 4,588 - 4,588 Total revenues 296,662 43,525 340,187 266,514 41,424 307,938

Operating expenses 124,797 15,181 139,978 113,292 14,585 127,877

Net Operating Income $ 171,865 $ 28,344 $ 200,209 $ 153,222 $ 26,839 $ 180,061

Notes: (1) Other rents are comprised primarily of charges to tenants for operating expenses. (2) Other revenues are comprised primarily of parking revenues, management fees, lease termination payments and late charges. (3) Minority interest ventures include: Randhurst, Ridgedale Center, Southland Center, Staten Island Mall and other assets acquird in the Rodamco transaction. The Rouse Company and Unconsolidated Proportionate Share Ventures Statement of Net Operating Income (in thousands)

Office and other properties For the three months ended June 30, 2002 2001 Unconsolidated Unconsolidated Proportionate Share Proportionate Share The Rouse Company Ventures Total The Rouse Company Ventures Total Minimum rents $ 37,662 $ 605 $ 38,267 $ 39,174$ - $ 39,174 Percentage rents - - - 121 - 121 Other rents (note 1) 5,350 172 5,522 5,069 - 5,069 Other revenues (note 2) 6,165 303 6,468 6,061 - 6,061 49,177 1,080 50,257 50,425 - 50,425 Share of FFO of minority interest ventures ------Total revenues 49,177 1,080 50,257 50,425 - 50,425

Operating expenses 18,877 667 19,544 18,809 - 18,809

Net Operating Income $ 30,300 $ 413 $ 30,713 $ 31,616$ - $ 31,616

Notes: (1) Other rents are comprised primarily of charges to tenants for operating expenses. (2) Other revenues are comprised primarily of parking revenues, management fees, lease termination payments and late charges. The Rouse Company and Unconsolidated Proportionate Share Ventures Statement of Net Operating Income (in thousands)

Office and other properties For the six months ended June 30, 2002 2001 Unconsolidated Unconsolidated Proportionate Share Proportionate Share The Rouse Company Ventures Total The Rouse Company Ventures Total Minimum rents $ 77,150 $ 605 $ 77,755 $ 78,476$ - $ 78,476 Percentage rents - - - 249 - 249 Other rents (note 1) 10,295 172 10,467 10,278 - 10,278 Other revenues (note 2) 11,966 303 12,269 12,350 - 12,350 99,411 1,080 100,491 101,353 - 101,353 Share of FFO of minority interest ventures ------Total revenues 99,411 1,080 100,491 101,353 - 101,353

Operating expenses 38,226 667 38,893 37,889 - 37,889

Net Operating Income $ 61,185$ $ 413 $ 63,464 $ 61,598 $ 63,464 -

Notes: (1) Other rents are comprised primarily of charges to tenants for operating expenses. (2) Other revenues are comprised primarily of parking revenues, management fees, lease termination payments and late charges. The Rouse Company Statement of Net Operating Income - Comparable and Noncomparable Properties (note) (in thousands)

Retail centers For the three months ended June 30, 2002 2001 Noncomparable Comparable Noncomparable Comparable properties properties Total properties properties Total Minimum rents $ 78,630 $ 27,245 $ 105,875 $ 74,856 $ 13,168 $ 88,024 Percentage rents 1,998 626 2,624 2,240 795 3,035 Specialty retail rents 4,757 1,497 6,254 4,087 696 4,783 Other rents 41,173 14,495 55,668 40,115 7,087 47,202 Other revenues 5,646 1,366 7,012 6,940 2,242 9,182 132,204 45,229 177,433 128,238 23,988 152,226 Share of FFO of minority interest ventures 1,936 807 2,743 2,138 241 2,379 Total revenues 134,140 46,036 180,176 130,376 24,229 154,605

Operating expenses 55,283 19,704 74,987 54,176 10,007 64,183

Net Operating Income $ 78,857 $ 26,332 $ 105,189 $ 76,200 $ 14,222 $ 90,422

Note - Noncomparable properties consist of projects which, in 2002 or 2001, were acquired, disposed of, expanded, opened or prepared for disposition. Such properties include the following: Fashion Show, Franklin Park, Lakeside Mall, North Star, Oakbrook Center, Paramus Park, Randhurst, The Streets at Southpoint, Water Tower Place, Westdale Mall, the Village Centers in Columbia, Maryland, and additional interests in Collin Creek, Perimeter Mall and Willowbrook. Noncomparable properties also include South Street Seaport due to the effect on the center’s immediate market caused by the September 11, 2001 catastrophe. The Rouse Company Statement of Net Operating Income - Comparable and Noncomparable Properties (note) (in thousands)

Retail centers For the six months ended June 30, 2002 2001 Noncomparable Comparable Noncomparable Comparable properties properties Total properties properties Total Minimum rents $ 155,689 $ 40,528 $ 196,217 $ 149,339 $ 25,734 $ 175,073 Percentage rents 4,332 1,248 5,580 4,152 1,460 5,612 Specialty retail rents 8,816 2,063 10,879 7,321 1,146 8,467 Other rents 81,229 21,441 102,670 82,338 14,005 96,343 Other revenues 12,581 7,342 19,923 14,151 3,704 17,855 262,647 72,622 335,269 257,301 46,049 303,350 Share of FFO of minority interest ventures 3,807 1,111 4,918 3,987 601 4,588 Total revenues 266,454 73,733 340,187 261,288 46,650 307,938

Operating expenses 108,268 31,710 139,978 107,758 20,119 127,877

Net Operating Income $ 158,186 $ 42,023 $ 200,209 $ 153,530 $ 26,531 $ 180,061

Note - Noncomparable properties consist of projects which, in 2002 or 2001, were acquired, disposed of, expanded, opened or prepared for disposition. Such properties include the following: Fashion Show, Franklin Park, Lakeside Mall, North Star, Oakbrook Center, Paramus Park, Randhurst, The Streets at Southpoint, Water Tower Place, Westdale Mall, the Village Centers in Columbia, Maryland, and additional interests in Collin Creek, Perimeter Mall and Willowbrook. Noncomparable properties also include South Street Seaport due to the effect on the center’s immediate market caused by the September 11, 2001 catastrophe. The Rouse Company Statement of Net Operating Income - Comparable and Noncomparable Properties (note) (in thousands)

Office and other properties For the three months ended June 30, 2002 2001 Noncomparable Noncomparable Comparable properties properties Total Comparable properties properties Total Minimum rents $ 37,214 $ 1,053 $ 38,267 $ 38,644 $ 530 $ 39,174 Percentage rents - - - 121 - 121 Other rents 5,228 294 5,522 5,013 56 5,069 Other revenues 6,131 337 6,468 6,030 31 6,061 48,573 1,684 50,257 49,808 617 50,425 Share of FFO of minority interest ventures ------Total revenues 48,573 1,684 50,257 49,808 617 50,425

Operating Expenses 18,739 805 19,544 18,603 206 18,809

Net Operating Income $ 29,834 $ 879 $ 30,713 $ 31,205$ 411 $ 31,616

Note - Noncomparable properties consist of projects which, in 2002 or 2001, were acquired, disposed of, expanded, opened or prepared for disposition. Such properties include the following: the office components of Oakbrook Center and Water Tower Place and new projects at Hughes Center and Summerlin Commercial. The Rouse Company Statement of Net Operating Income - Comparable and Noncomparable Properties (note) (in thousands)

Office and other properties For the six months ended June 30, 2002 2001 Noncomparable Noncomparable Comparable properties properties Total Comparable properties properties Total Minimum rents $ 75,971 $ 1,784 $ 77,755 $ 77,392 $ 1,084 $ 78,476 Percentage rents - - - 249 - 249 Other rents 10,040 427 10,467 10,099 179 10,278 Other revenues 11,839 430 12,269 12,107 243 12,350 97,850 2,641 100,491 99,847 1,506 101,353 Share of FFO of minority interest ventures ------Total revenues 97,850 2,641 100,491 99,847 1,506 101,353

Operating Expenses 37,800 1,093 38,893 37,363 526 37,889

Net Operating Income $ 60,050 $ 1,548 $ 61,598 $ 62,484 $ 980 $ 63,464

Note - Noncomparable properties consist of projects which, in 2002 or 2001, were acquired, disposed of, expanded, opened or prepared for disposition. Such properties include the following: the office components of Oakbrook Center and Water Tower Place and new projects at Hughes Center and Summerlin Commercial. The Rouse Company Schedule of Expiring Footage, excluding department stores and storage (note 1) As of June 30, 2002

Retail centers Remaining 2002 2003 2004 2005 2006 Footage Rent PSF Footage Rent PSF Footage Rent PSF Footage Rent PSF Footage Rent PSF

Owned and proportionate share properties 813,181 $ 24.23 1,605,930 $ 24.14 1,232,356 $ 30.54 1,289,441 $ 32.58 1,400,506 $ 30.61 Managed and other properties 100,448 $ 17.66 213,850 $ 22.43 200,897 $ 27.32 218,977 $ 25.98 166,042 $ 28.82

Total 913,629 $ 23.51 1,819,780 $ 23.94 1,433,253 $ 30.09 1,508,418 $ 31.62 1,566,548 $ 30.42

Office and other properties Remaining 2002 2003 2004 2005 2006 Footage Rent PSF Footage Rent PSF Footage Rent PSF Footage Rent PSF Footage Rent PSF

Owned and proportionate share properties 864,671 $ 17.21 1,503,368 $ 15.89 1,247,416 $ 17.56 1,008,293 $ 20.74 1,228,058 $ 23.06

Note: (1) Footage amounts represent gross leasable area expiring during the year and rent PSF represents billable minimum rent per square foot at expiration. Re-leasing assumptions are not included. The Rouse Company and unconsolidated proportionate share ventures Capital Expenditures For the three months ended June 30, 2002 (in thousands)

Unconsolidated The Rouse Proportionate Retail centers Company Share Ventures Total

New Developments $16,164 $16,280 $32,444

Renovations and Expansions 28,428 1,938 30,366

Tenant Allowances, Improvements and Leasing Commissions 2,528 - 2,528

Building and Other 1,864 - 1,864

Total $48,984 $18,218 $67,202

Unconsolidated The Rouse Proportionate Office and other properties Company Share Ventures Total

New Developments $4,201 $244 $4,445

Renovations and Expansions - - -

Tenant Allowances, Improvements and Leasing Commissions 3,084 - 3,084

Building and Other 326 - 326

Total $7,611 $244 $7,855 The Rouse Company and unconsolidated proportionate share ventures Capital Expenditures For the six months ended June 30, 2002 (in thousands)

Unconsolidated The Rouse Proportionate Retail centers Company Share Ventures Total

New Developments $19,111 $30,893 $50,004

Renovations and Expansions 50,430 2,919 53,349

Tenant Allowances, Improvements and Leasing Commissions 4,691 120 4,811

Building and Other 3,212 3,501 6,713

Total $77,444 $37,433 $114,877

Unconsolidated The Rouse Proportionate Office and other properties Company Share Ventures Total

New Developments $5,184 $244 $5,428

Renovations and Expansions - - -

Tenant Allowances, Improvements and Leasing Commissions 5,132 - 5,132

Building and Other 3,458 - 3,458

Total $13,774 $244 $14,018 The Rouse Company and unconsolidated proportionate share ventures Combined Balance Sheets (in thousands)

June 30, 2002 December 31, 2001

Unconsolidated Unconsolidated The Rouse Proportionate The Rouse Proportionate Company Share Ventures Total Company Share Ventures Total

Assets: Operating properties, net$ 4,673,056 $ 671,646 $ 5,344,702 $ 3,528,688 $ 441,028 $ 3,969,716 Properties in development 268,879 142,430 411,309 217,762 100,474 318,236 Land held for development and sale 307,997 252 308,249 284,291 436 284,727 Properties held for sale 12,684 - 12,684 68,423 6,768 75,191 Investments in and advances to other unconsolidated real estate ventures 536,917 (414,459) 122,458 269,573 (225,295) 44,278 Prepaid expenses, receivables under finance leases and other assets 364,232 4,261 368,493 369,673 20,471 390,144 Accounts and notes receivable 61,248 15,083 76,331 87,753 10,695 98,448 Cash, cash equivalents and marketable securities 54,284 17,009 71,293 54,280 7,737 62,017

Total$ 6,279,297 $ 436,222 $ 6,715,519 $ 4,880,443 $ 362,314 $ 5,242,757

Liabilities and shareholders equity: Mortgages payable and other long term debt 4,380,040 424,314 4,804,354 3,488,820 436,442 3,925,262 Other liabilities 603,774 11,908 615,682 599,298 (74,128) 525,170 Minority interest in majority financial interest ventures ------Company-obligated preferred securities 136,965 - 136,965 136,965 - 136,965 Shareholders’ equity 1,158,518 - 1,158,518 655,360 - 655,360

Total$ 6,279,297 $ 436,222 $ 6,715,519 $ 4,880,443 $ 362,314 $ 5,242,757 The Rouse Company and unconsolidated proportionate share ventures Comparative Balance Sheets (in thousands)

June 30 March 31 December 31 September 30 June 30 2002 2002 2001 2001 2001

Assets: Operating properties, net$ 5,344,702 $ 3,953,271 $ 3,969,716 $ 3,953,563 $ 3,965,552 Properties in development 411,309 342,595 318,236 312,002 267,903 Land held for development and sale 308,249 296,925 284,727 279,646 250,582 Properties held for sale 12,684 83,661 75,191 76,037 76,883 Investments in and advances to other unconsolidated real estate ventures 122,458 46,014 44,278 42,052 35,515 Prepaid expenses, receivables under finance leases and other assets 368,493 390,142 390,144 412,742 399,032 Accounts and notes receivable 76,331 85,580 98,448 108,400 103,381 Cash, cash equivalents and marketable securities 71,293 318,188 62,017 34,002 44,455

Total$ 6,715,519 $ 5,516,376 $ 5,242,757 $ 5,218,444 $ 5,143,303

Liabilities and shareholders equity: Mortgages payable and other long term debt$ 4,804,354 $ 3,784,985 $ 3,925,262 $ 3,924,294 $ 3,840,700 Other liabilities 615,682 497,529 525,170 501,632 514,359 Company-obligated preferred securities 136,965 136,965 136,965 136,965 136,965 Shareholders’ equity 1,158,518 1,096,897 655,360 655,553 651,279

Total$ 6,715,519 $ 5,516,376 $ 5,242,757 $ 5,218,444 $ 5,143,303 The Rouse Company and unconsolidated proportionate share ventures Debt Summary (in thousands) June 30,2002 Unconsolidated The Rouse Company Proportionate Share Ventures Total Weighted- Weighted- Weighted- Weighted- Weighted- Weighted- average average average average average average Interest Maturity Interest Maturity Interest Maturity Amount Rate (years) Amount Rate (years) Amount Rate (years)

Parent Company debt and property debt carrying a parent company guarantee of repayment

Variable rate$ 500,523 3.3% 0.7$ 14,718 3.7% 1.3$ 515,241 3.3% 0.7 Variable rate debt swapped to fixed 160,500 3.9% 2.0 27,348 5.3% 1.3 187,848 4.1% 1.9 Fixed rate 488,627 8.0% 4.5 - - - 488,627 8.0% 4.5

1,149,650 5.4% 2.5 42,066 4.7% 1.3 1,191,716 5.4% 2.5

Property debt not carrying a Parent Company guarantee of repayment

Variable rate 267,223 3.3% 1.8 101,750 2.8% 1.3 368,973 3.2% 1.7 Variable rate debt swapped to fixed 265,750 4.4% 3.2 70,714 6.1% 2.3 336,464 4.7% 3.0 Fixed rate 2,697,417 7.5% 6.1 209,783 6.8% 6.3 2,907,200 7.4% 6.1

3,230,390 6.9% 5.5 382,247 5.6% 4.2 3,612,637 6.8% 5.4

Total debt$ 4,380,040 6.5% 4.7$ 424,313 5.6% 3.9$ 4,804,353 6.4% 4.6 The Rouse Company and unconsolidated proportionate share ventures Schedule of balloon payments due (in thousands) June 30, 2002

2002 2003 2004 2005 2006

The Rouse Company$ 433,508 $ 613,578 $ 393,508 $ 278,948 $ 344,895

Unconsolidated Proportionate Share Ventures - 196,316 70,714 - -

Total$ 433,508 $ 809,894 $ 464,222 $ 278,948 $ 344,895 The Rouse Company Coverage Ratios June 30, 2002

Interest 6/30/02 6/30/01 1) Funds from operations 144,608 140,597 2) Interest expense 133,478 134,233 3) Quips expense 6,420 6,420

Calculation: (1+2+3)/2 2.1 2.1

Fixed Charges 1) Funds from operations 144,608 140,597 2) Interest expense 133,478 134,233 3) Quips expense 6,420 6,420 4) Preferred stock dividends 6,074 6,074

Calculation: (1+2+3)/(2+3+4) 1.9 1.9 The Rouse Company Net Operating Income from Community Development (in thousands)

For the three months ended June 30, 2002 Columbia Summerlin Total and Other and Other Community Land Hughes Land Development

Revenues$ 9,984 $ 36,948 $ 46,932 Operating costs and expenses 1,359 30,010 31,369

Net Operating Income$ 8,625 $ 6,938 $ 15,563

For the three months ended June 30, 2001 Columbia Summerlin Total and Other and Other Community Land Hughes Land Development

Revenues$ 8,380 $ 56,524 $ 64,904 Operating costs and expenses 4,656 41,205 45,861

Net Operating Income$ 3,724 $ 15,319 $ 19,043

For the six months ended June 30, 2002 Columbia Summerlin Total and Other and Other Community Land Hughes Land Development

Revenues$ 31,070 $ 72,079 $ 103,149 Operating costs and expenses 11,402 56,475 67,877

Net Operating Income$ 19,668 $ 15,604 $ 35,272

For the six months ended June 30, 2001 Columbia Summerlin Total and Other and Other Community Land Hughes Land Development

Revenues$ 37,255 $ 96,263 $ 133,518 Operating costs and expenses 17,973 69,941 87,914

Net Operating Income$ 19,282 $ 26,322 $ 45,604 The Rouse Company Sales Data Rolling Twelve Months Ended June 30, 2002

Volume As of July 1, 2001, The Rouse Company managed 14,074,329 square feet of retail space that continued to be in operation at June 30, 2002. The volume of sales produced in that comparable (same-store) space decreased by 1.7% during 2002 over 2001. For detailed information concerning growth by merchant category and region please see the Rouse Retail Barometer.

Productivity There are numerous ways to compute and analyze sales per square foot for portfolios of properties. Listed below are some of the most meaningful. Data below is exclusive of community centers, and projects in disposition. Comparable tenants in comparable properties, excluding tenant space over 10,000 square feet. $406 Comparable tenants in all properties, excluding tenant space over 10,000 square feet. $413 Comparable tenants in comparable properties. $379 Comparable tenants in all properties. $387 Comparable space sales in comparable properties, excluding space over 10,000 square feet. $392 Comparable space sales in all properties, excluding space over 10,000 square feet. $402 Comparable space sales in comparable properties. $369 Comparable space sales in all properties. $379

Definitions: Comparable tenant sales: Same tenant, same space with no new additions. Comparable space sales: Same space in both years, no acquisitions or new development. Non-comparable properties: Properties which, in 2002 or 2001, were acquired, expanded, opened or prepared for disposition, for a listing of non-comparable projects please see the retail statements of net operating income. The Rouse Company Occupancy Percentages June 30, 2002

Occupancy at Average Occupancy at Average June 30, 2002 Occupancy YTD June 30, 2001 Occupancy YTD

Retail: The percentages noted below are exclusive of community centers, and projects in disposition. For a definition of comparable properties, please see the retail statement of net operating income. Comparable properties 92.9% 92.4% 92.1% 92.6% Comparable and non-comparable properties combined 92.7% 92.4% 88.6% 89.1%

Office 88.9% 90.5% 94.1% 94.2%